R870 billion to be invested in public infrastructure – SA budget 2016


South African finance minister, Pravin Gordhan, has allocated R70 billion this year and R180 billion over the next three years in energy investments for South Africa.

In his budget speech on Wednesday, South African Minister of Finance, Pravin Gordhan, also mentions the completion of a R7.9 billion capital transfer to the Development Bank of Southern Africa.

“To finance the investment needed for sustainable growth, we have the institutional capacity to blend international and domestic capacity to blend international and domestic savings, and to combine public and private sector financing to mitigate risk and reduce the cost of capital,” says Gordhan.

[Read S.A Finance Minister Pravin Gordhan’s 2016 Budget Speech here: 

R292 billion has been allocated for transport and logistics infrastructure by the minister over the next three years and a further R62 billion has been allocated for housing subsidy programmes.


–          Energy investment amounts to R70 billion this year and will be over R180 billion over the next three years, as construction of the Medupi, Kusile and Ingula power plants is completed.

–          Transport and logistics infrastructure accounts for nearly R292 billion over the next three years under Minister Peters’ oversight. Transnet is acquiring 232 diesel locomotives for its general freight business and 100 locomotives for its coal lines. There is R3.7 billion to upgrade the Moloto Road, R30 billion for provincial roads maintenance, R18 billion for bus rapid transit projects in cities and refurbishment of over 1700 Metrorail and Shosholoza Meyl coaches.

–          R62 billion is allocated for the housing subsidy programmes of Minister Sisulu’s department, and R34 billion for bulk infrastructure and residential services in metropolitan municipalities.

–          R28 billion will be spent over the MTEF on improving health facilities and R54 billion on education infrastructure.

–           Under Minister Mokonyane’s leadership, the next phase of the Olifants River water scheme is in progress, completion of the supply to Lukhanji Municipality in the Eastern Cape, completion of the Wolmaransstad wastewater treatment works and construction of the Polihali Dam as part of the Lesotho Highlands project.